BME_2017_15_2 maketas_spaudai.indd Copyright © 2017 The Authors. Published by VGTU Press. This is an open-access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 (CC BY-NC 4.0) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. The material cannot be used for commercial purposes. B U S I N E S S, MA N AG E M E N T A N D E D U C AT I O N ISSN 2029-7491 / eISSN 2029-6169 2017, 15(2): 211–226 doi:10.3846/bme.2017.375 IMPORTANCE OF MOTIVATION AND WORK PAY OF YOUNG EMPLOYEES IN THE VALUE CREATION CHAIN OF A BUSINESS COMPANY: ASSESSMENT OF CHANGES IN AND FORMATION OF EXPECTATIONS Laura PILUKIENĖ Business Department, Faculty of Economics, Vilnius University, Saulėtekio al. 11, LT-10223, Vilnius and Lithuania E-mail: laura.pilukiene@ef.vu.lt Received 30 August 2017; accepted 02 October 2017 Abstract. As business companies compete in the market and seek to acquire a competitive advantage, one of the most important factors is well-motivated em- ployees who are satisfied with their job. The success of companies operating in various sectors is determined by the quality of products, while the quality is en- sured by qualified employees having appropriate skills and knowledge, whose work should be appreciated by monetary work pay established based on reason- able and clear criteria as well as other means of motivation. The process of human resources management in a business company places an ever-growing importance on the development of competences of employees, strengthening of cooperation, empowerment of employees as well as their work pay and motivation in order to achieve an employee’s work quality and productivity, satisfaction of customer needs and successful operation of a company. In the process of the company’s human resources management, special focus should be given to the satisfaction of the expectations and needs of new employees (who are usually young and inexperienced) as well as their integration, which ensures the generation of new and creative ideas in the company and, at the same time, high quality of products and work productivity. Keywords: wage, employee needs and expectations, motivation, value chain, stu- dent, young employee. JEL Classification: J30, J31. 1. Introduction In the process of creation of products of business companies, one of the most important roles is played by the employee. Appropriate selection of employee motivation and work payment measures, based on the satisfaction of employee needs and expectations, rests on two main aspects: 1) Each employee has innate features and gifts which, in his/her interaction with the internal work environment as well as external environment, change and develop 212 L. Pilukienė. Importance of motivation and work pay of young employees in the value creation chain of a business company: assessment of changes in and formation of expectations while character traits have an impact on his/her actions in individual situations as he/she communicates with customers; 2) Each employee is different according to many features, therefore, it is necessary to assess his/her needs and expectations as a new employee is hired (in particular, if these new employees are young and recent graduates). The problem lies in the fact that business companies, when they do not find ways to clarify what monetary pay corresponds to the needs of potential or newly hired em- ployees or do not try to provide optimum working conditions satisfying such employees, loose the human capital of such employees accumulated during their studies, which forms the basis for long-term survival of a company in a competitive dynamic market. The purpose of this article is to assess challenges and possibilities related to motiva- tion and work payment of potential employees of business companies (students) in the process of creation of value of products in order to highlight changes in the expectations of students’ work pay. In order to achieve the purpose of the article, the article first of all presents theoreti- cal aspects of the importance of employee motivation and work pay in the process of creation of the value of a business company. Based on theoretical attitudes, the article analyses the results of an empirical study representing the changes in work pay expec- tations of students as potential employees of business companies. Finally, the article provides problem aspects of formation of work pay expectations of potential employees (students) as well as improvement possibilities. The subject of research is the change of student’s expectations of desirable wage. Systematic analysis of scientific literature based on a comparative method and the method of synthesis, the questionnaire survey of the students (first year) of the university in 2014, the questionnaire survey of the students (fourth year) of the university in 2017, and the statistical processing, systema- tization and analysis of the results thereof. The statistical processing of the results of the empirical research has been carried out by means of the statistical analysis software and the data processing packages Microsoft Office Excel, IBM SPSS Statistics 21. The scientific article is based on continuous collection of data after 3 years. Piluk- iene (2015) analysed problem aspects of integration into the labour market of persons of young age (18–23 years of age) who were accepted to study at university in 2014, which were related to the expectations of a desired work pay. This article analyses the results of a survey of students who started their studies in 2014 on their work pay ex- pectations together with the results of a follow-up survey of the students conducted in 2017 (for a second time, after three years). 2. Importance of employee motivation and work pay in the process of creation of the value of a business company Qualified and motivated staff, which can create high value from the point of view of a customer, becomes the main competitive factor of a business company. It is universally 213 Business, Management and Education, 2017, 15(2): 211–226 recognised that employee motivation depends on the individual, conditions and time, it is not constant and it continuously changes. Due to such complexity it is impossible to give an unambiguous answer as to how it is best to motivate staff (Marcinkeviciute 2005). The place of human resources in the value creation chain shown in Figure 1 illustrates the link between employee satisfaction and their productivity and quality of work, which has an impact on the growth of customer loyalty and profitability of a company. Only satisfied, loyal and competent employees form the basis for ensuring work productivity and quality of products while trying to achieve the growth of a com- pany’s income, profit and customer loyalty. This is confirmed by Kerestešová (2012) who maintains that the process of value creation in a business company must be based on a thought-out employee motivation system founded on such main elements as ef- fort – result – reward – satisfaction. According to Kukreja (2017) the motivation process is based on a philosophy of internal marketing. The philosophy of internal marketing is Fig. 1. Importance of human resource management in the process of creation of the value of a business company (source: created by the author) 214 L. Pilukienė. Importance of motivation and work pay of young employees in the value creation chain of a business company: assessment of changes in and formation of expectations that employees of an organization constitute its internal market, which has customers, suppliers and creates value (a chain of value). The chain of value is formed inside the organization which must be intended to supply the needs of both the employees and customers. To sum up, it can be said that the value creation chain of a business company has the following fundamental aspects: 1) Work pay and motivation system, which is conditioned by the human resources system in a company, determines employee satisfaction and loyalty; 2) Employee satisfaction and loyalty have an impact on the productivity and quality of employee work; 3) Quality of products determines customer satisfaction and growth in loyalty; 4) Customers which are satisfied with products and loyal determine the growth of a company’s income and profit; 5) A company’s income and profit is one of the most important factors in the forma- tion of an employee motivation and work pay system. The human resources and value creation chain shows the importance of ensuring employee work satisfaction and loyalty in order to ensure successful operation of a busi- ness company. Many authors single out various factors, such as a company’s resources, culture, management style, internal communication, control system, etc.; which have an impact on the employee’s work satisfaction. Koudelkova and Milichovsky (2015), who analysed the importance of employee motivation in the innovation creation process in a company, have revealed the following important elements: clear setting of goals, employee motivation in the current time, usage of incentives which are valuable from the point of view of employees and fulfilment of promises made to employees. A special role is also played by such qualitative features of an employee himself/ herself as creativity, ability to work in a team, pro-activeness and enthusiasm, which are difficult to assess and measure. All the enumerated features have an impact on an employee’s productivity, which is understood as the use of his/her knowledge, experi- ence and abilities while seeking to perform an efficient transformation of the possessed resources into products creating value for the consumer and the company. According to Gupta et al. (2012) employees are not involved in knowledge (experience, abilities) sharing behavior for their individual incentives but they are more willing to share for organizational growth. It implies that organization needs to create more employee en- gagement activities which can build up emotional friendly for learning environment in organization (employees emotional commitment). The said features highlight the fact that, in order to ensure an employee’s productivity, in a company, special attention should be given to the employee learning process (in particular, of young employees who have been recently hired). It should also be stressed that it is important to hire employees with the necessary educational background, competence and abilities. Before employees selection organisations should be aware of organisational principles, culture, 215 Business, Management and Education, 2017, 15(2): 211–226 strategies, competences (objectives and requirements to employees) that correspond to a job (Starineca 2016). According to Lazauskaite-Zabielske et al. (2015) in employee socialization, prosocial (positive, helpful) behaviour may be strengthened by good citi- zenship climate, by providing new employees with help and necessary support from mentors, co-workers and managers, and by demonstrating organizational citizenship behaviour as well. As is seen in the figure 1, if during the selection process new employees are se- lected properly, taking into account their relative value, personal characteristics, social standing as well as needs and expectations, it is possible to form their work satisfaction and loyalty more easily. As a new employee (young, recent graduate) is hired, he/she “brings” the attitude, features, competences, etc. shaped in the educational establish- ment. According to Verhaest and Omey (2013) higher-educated employees are more likely to acquire skills during their first jobs than lower-educated people. The authors note that overeducated employees also have lower skill acquisition probabilities than adequately educated employees with similar educational backgrounds. According to the results of studies by Oganisjana and Koke (2012), the develop- ment of the competence of students (potential new employees) is closely related to the growth of their entrepreneurship. Based on that, according to the authors (2012), atten- tion should be paid to the goal of contemporary higher education to develop students’ entrepreneurship, which is understood as a dynamic system and is defined using not only such elements as knowledge, skills and attitudes, but also includes the individual’s nature, features, experience, motivation and behaviour. Differences between new and existing employees (in terms of education, skills, at- titudes, etc.) make efficient learning process in a company more difficult. In order to become a successfully learning company, it is advisable not only to improve the learning process, but also change the entire system of human resources management, so that it would help all employees to learn (Kumpikaite 2008). According to the latter author (2008), the development of human resources in a company has the potential to have a large positive impact both on separate (different) individuals in a company and on the whole company in its entirety. In order to provide conditions for employees to perform the assigned tasks in a com- pany in the best possible manner, in the environment of business companies, employee empowerment becomes crucial. The analysis of satisfaction and empowerment of em- ployees (in companies operating in the services sector) by Ukil (2016) has shown that employee empowerment has a major positive impact on employee satisfaction and the quality of services provided. According to Ukil (2016) companies need to make a par- ticipative culture and friendly atmosphere in the organization by sharing vision, values and information with employees, giving some autonomy, and allowing them to become a part in decision-making. New tendendences in the labour market impact the approach an organization takes to human resource management, particularly to its strategic role. 216 L. Pilukienė. Importance of motivation and work pay of young employees in the value creation chain of a business company: assessment of changes in and formation of expectations This situation requires human resources departments to change their own activities and objectives, to act in a more mature manner (Cesyniene et al. 2013). According to Kerestešová (2012), if the company wants to be successful, it must try to connect all the factors and principles of effective and motivating planning and to reach their synergistic effect, which can be achieved in a systematic process of creation and integration of planning and motivation in the business company. The analysis of compensation structure of sales managers proved that an evaluation and respect from the part of leader and co-workers, clear instructions, career opportunities, friendly emotional environment, work assignments linked to sales manager’s needs and capabilities make the biggest impact on job satisfaction.While financial wage have shown much lower im- pact (Sukaite et al. 2015). The establishment of direct and indirect work pay, taking into account an employee’s needs and expectations, as well as application of measures of internal value (improvement of employees’ skills, ensuring of good working conditions and development of internal culture and cooperation) determine productive and quality work of highly qualified employees as well as low turnover of staff (see Fig. 1). This is substantiated by Chughtai (2013) while analysing such aspects of human resources management as the development of employee competences, the work pay structure, the recognition in a company and balanced working time. The deliberate human resource management in a business company leads to employee engagement (loyalty) which ensues in low turnover intentions. For the business companies to excel in the business environment, the best should be provided to the employees in order to get the best out of them (Chughtai 2013). In spite of employee heterogeneity in terms of age, seniority, skills and level of com- pleted education it is possible to create a united motivation and remuneration system for the business company that will suit all employees regardless of their age, seniority or education (Hitka, Balazova 2015). According to these authors (2015), main items of motivation and remuneration system are following factors: basic salary, job security, good work team, further financial reward and fair appraisal system in different order according to preferences of specific group of employees (by different personal features- seniority, age, education, skills). Bearing in mind that different things motivates different employees and that they have different needs, it is crucial for managers in organizations to identify what moti- vates every single employee and, in accordance with that, to develop the proper system of motivation (Ristic et al. 2017). Both hiring new employees and ensuring the current employees’ material welfare and the environment which is motivating and favourable to work, the role of the man- ager-leader is also to be stressed: it is the manager’s position, attitudes and principles which are the basis of the creation of the work pay and motivation system. The analy- sis (Bakanauskiene et al. 2017) allowed to identify such features of manager-leader attractiveness in Lithuanian business organizations, perceived by their employees, as: 217 Business, Management and Education, 2017, 15(2): 211–226 attractive wage, friendly working atmosphere and good working conditions, interesting work, flexibility and freedom at work, timely payment of wage, organization’s social responsibility and reliability, innovation in organization, a respectful treatment of em- ployees, etc. Employees in relations with their managers-leaders seek material gain. As- sessing employees and managers-leaders relations, authors Staniuliene and Kucinskaite (2017) found employees being convicted that managers-leaders are at a higher level and in accordance with the rules they pass orders down to the management levels. There- fore, the manager-leader should create a non-hierarchical management model focusing on the relationships with employees (Staniuliene, Kucinskaite 2017). In the everyday operation of companies, leadership-based management (ensuring mutual understanding of the management and employees) has a positive impact on the work atmosphere in a business company and has an indirect influence on work results by employees (Khuong, Khanh 2016). To sum up, it is possible to maintain that employee work satisfaction and their loyalty to a business company determine high productivity and quality of work, while human resources are a source of acquisition of the competitive advantage of a business company. Even though the link between the retention of highly qualified employees with appropriate abilities and successful operation of a business company is obvious, however, there are a lot of discussions about the application of the most appropriate work pay and motivation measures as well as the management of the process of work payment and employee motivation, in particular, as regards young and recently hired employees. 3. Young employee motivation and expectations at work: problem aspects The analysis of the impact of human resources in the value creation chain of a business company has revealed the importance of integration of new employees. In order to en- sure successful operation of a company, the main aspects of socialisation and motivation of new employees (usually young and recent graduates) should be noted. According to Bogodistov and Lizneva (2017) managers can, e.g. choose an appropriate motivational system to increase different employees’ efficiency. Based on the relational models theory (it incorporates dimensions of work, distribution, exchange, morals, values, and other important work aspects), managers-leaders can predict how relationships between em- ployees (usually new employees) will evolve and which instruments are better suited for human resources management (Bogodistov, Lizneva 2017). In a business company, new employees or potential employees are characterised by their relative value, personal fea- tures, social standing as well as needs and expectations, which are different if compared with older employees having a lot of work experience (see Fig. 2). Young employees constitute often a disadvantaged group in the sense that they are overrepresented in low-paid, low-skills jobs (Menezes et al. 2011). According Kvedaraite et al. (2015) the most important reasons behind a failure of young people to establish their positions in 218 L. Pilukienė. Importance of motivation and work pay of young employees in the value creation chain of a business company: assessment of changes in and formation of expectations the labour market are associated with a low qualification and little work experience. The majority of them are not satisfied with the pay in Lithuania, i.e. the graduates of higher education show the need for a higher wage than business organizations are ready to pay. Hamaaki et al. (2012), having analysed changes in work organisation and motivation of Japanese companies, have touched upon problem aspects of differences between new employees and employees who have worked in a company for a long time. The authors’ (2012) findings suggest that a growing share of educated, qualified young employees choose to leave indefinite-contract jobs due to the poor prospects for seniority-based wage progression, while older employees (they often don’t think about their qualifica- tion improvement) choose to stay in their present job despite stagnating wages, because it may be more difficult for them to find alternative employment. The aging of population affects new trends in the labour market and raises new organizational challenges. In order to ensure employees productivity, not only do or- ganizations need to take care of the improvement of working conditions, but also focus on their health and diversity management (Ciutiene, Railaite 2015).Young and educated employees expect to receive a higher salary not only because of a longer period of service, but also due to such factors as creativity, new ideas as well as duly and timely performed tasks at the current moment. The creation of the employee motivation and payment system in a business company must be based on satisfaction of concrete needs of employees, i.e. by providing possibilities to young employees to learn and improve, express their ideas and reveal their creativity. Radical changes in the competitive con- ditions in the last decade require that the management of the country’s companies re- evaluate the fundamental thinking, attitudes and positions as regards essential changes in employee motivation and formation of management philosophy attitudes (Marcink- eviciute 2005), i.e. try to understand new needs and possibilities of the labour market as well as the peculiarities of employees of a new generation. Another important aspect while analysing the work of young employees in business companies is ensuring their loyalty. Due to many opportunities in the labour market, many companies usually find it very difficult to retain loyal employees, especially if they are young. According to such authors as Menezes et al. (2011), young employees often choose an interesting job they like, which is, however, risky and unstable, they are not afraid of changing a job more often and they are looking for a satisfying salary, but at the same time they accumulate experience, knowledge and skills (human capital accumulation). It is necessary to take strategic decisions in the area of management of human re- sources. Certain research suggests that various facets of job satisfaction impact employ- ees’ commitment and motivation. Some specific human resource strategic decisions can be introduced to impact different facets of job satisfaction. For example, fair appraisal and feedback can impact job satisfaction with promotion; compatible work group deeply related to satisfaction with coworkers; recognition with individual performance and caring leadership can impact satisfaction with supervision (Fu 2014). Safely integrat- 219 Business, Management and Education, 2017, 15(2): 211–226 ing young employees in the business company necessarily puts an emphasis on the relationship between their age and experience (qualification) on the one hand and health and safety on the other (Laberge, Ledoux 2011). To sum up, it is possible to maintain that it is advisable for business companies to pay attention to non-material motivation factors, which are especially important to young employees who are only starting their career and are planning it. Studies of Ismail et al. (2016) are geared towards employees of Gen-X (born in 1960–1979) and Gen-Y (born in 1980–2000), because these two generations currently comprise the majority of employees in many business companies around the world. The authors compared the impact of personal and cultural values of employees of these groups on career planning and achievement of career objectives. For younger employ- ees, the improvement process and possibilities in a business company are very important (employee’s comprehensive self-improvement). Compared to older employees, younger ones seek to exceed the limits of their achievements and expand their abilities. It is possible to single out a group of authors who compare the peculiarities and dif- ferences of behaviour of young and older employees in business companies in the areas of social business responsibility and business ethics, i.e. by exploring the peculiarities of responsible and right behaviour of employees and managers in business companies. Like in some studies, older employees reported less ethical behaviour than younger employees (Sankaran, Bui 2003). According to Fu (2014), it is possible to find a sig- nificant direct correlation between the employee’s age and claims made (over-claiming), i.e. older individuals more often tend to make higher, sometimes unreasonable claims with regard to the company, or even lie (seeking to ensure that their claims or wishes are implemented) than younger employees. Different results of various studies demon- strate the necessity of an analysis of the peculiarities of behaviour of young and older employees in business companies. The employees’ attitude towards ethical behaviour in a business company may reveal their involvement in work, loyalty and motivation to work. The overview of the researches into the corporate social responsibility initiatives showed a positive impact on employee satisfaction, self-image, team work, loyalty, re- tention, trust, psychological need of belongingness, employee morale and commitment (Skudiene, Auruskeviciene 2012). It is also noteworthy that sometimes wrong assumptions of business companies about ethical behaviour of employees hinder the hiring of the best suited employees, for instance, such an opinion that young employees tend to behave not particularly responsibly or ethically. 4. Methodology of empirical research An empirical study, which was carried out using the survey method of a questionnaire, sought to reflect the changes in the students’ opinions about work pay expectations. In September 2014, 77 respondents studying in the first year were surveyed, while in 2017 220 L. Pilukienė. Importance of motivation and work pay of young employees in the value creation chain of a business company: assessment of changes in and formation of expectations students (studying in their fourth year) were asked to answer the same questions (a short questionnaire of closed-type questions). The main problem aspect of the empirical study is represented in the figure 2. This follow-up study seeks to answer the following question – whether the work pay specified by fourth year students, for which they would agree to work following graduation, is lower or more in conformity with the real situation in the labour mar- ket? The results of the empirical study, based on a comparative analysis of the results of 2014 and 2017, reveal whether the educational establishment adequately forms the students’ approach to work and work pay as well as prepares them for integration into the labour market. Three main questions given in the questionnaire of the survey are targeted at high- lighting of the students’ opinion towards the desired wage and the minimal wage accept- able for work upon the completion of studies. The aim is also to examine the situation of the students’ attitudes towards the working time for an average remuneration in the Lithuanian labour market. 5. Analysis of research results The empirical study is based on the results of a survey of salary expectations of students who started their studies in 2014, which are analysed compared with the results of a student survey in 2017 (seeking to survey the students for a second time after three years, in 2017). Fig. 2. Model of empirical research: relation of student, higher educational institution and business company (source: created by the author) The first- year student (2014 year) Higher educational institution Potential employee in business company Attitude Impact „Brought“ attitude of first-year student (expectation of salary and work motivation ) „Took“ attitude of fourth-year student (expectation of salary and work motivation ) The fourth- year student (2017 year) Attitude C h a n g e s Relative value Expectations and needs Personal qualities Social state Desired wage Minimum wage 221 Business, Management and Education, 2017, 15(2): 211–226 In 2014, 77 students of the first year were surveyed, while in 2017, 52 students of the fourth year were surveyed (129 respondents in total). It is important to mention the fact that while conducting the survey in 2014, respondents expressed their opinion about work pay assessing it in litas. Following the introduction of the euro in Lithuania in 2015, in 2017, respondents assessed their desired work pay in euros. The empirical study is based on the analysis of such problem aspects: – Respondents’ opinion about the desired net work pay while working according to their speciality (nature of work related to the studies) following graduation; – Respondents’ opinion about the lowest work pay following graduation (work ac- cording to their speciality, nature of work related to the studies), for which they would agree to work; – Respondents’ opinion about the number of working hours if they received the aver- age work pay in Lithuania at that time; – Peculiarities of work pay of working respondents. The desired wage. The comparative analysis of the students’ responses in regard to the year of studies has revealed that the desired wage of the first-year students (after the completion of studies) amounts to an average of around 724 euros, while of the fourth- year students 708 euros (see Table 1). The difference (15,2 euros or 2,1%) between the answers shows that the final-year students are assessing their abilities and opportunities in the labour market more critically and realistically. Table 1. The desired wage and the minimum wage for which the respondents would agree to work after the completion of studies (source: created by the author. The table is based on the data provided by questionnaire research) Respondents The first-year students (in 2014) The fourth-year students (in 2017) Difference (between 2014 and 2017) The desired wage Mean 723.5 euros 708.3 euros 15.2 euros or 2.1% The ratio of mean to average net wage at this time* 1.37 1.1 Std. deviation 268.9 209.7 The minimum wage Mean 576.7 euros 545.3 euros 31.4 euros or 5.4% The ratio of mean to average net wage at this time* 1.09 0.85 Std. deviation 255.8 149.8 *According to Statistics Lithuania net average monthly wage in 2014 was 527.2 EUR, in 2017 (I qv) net average monthly wage was 644.5 EUR. 222 L. Pilukienė. Importance of motivation and work pay of young employees in the value creation chain of a business company: assessment of changes in and formation of expectations The analysis of the ratio of the desired net work pay of the students to the average net work pay in Lithuania at that time has revealed interesting results: the ratio of the desired work pay of students surveyed in 2014 to the average work pay in the country in 2014 reached 1.37 (the desired net work pay was about 27 per cent higher than the average net work pay in the country at that time), while in 2017, the ratio of the desired work pay of surveyed students to the average work pay in Lithuania at that time stood at 1.1, i.e. the desired net work pay was only about 9 per cent higher than the average net work pay in the country at the time. The minimum wage. The fourth year students would agree to work for a work pay lower (EUR 545.3) than the first year students (EUR 576.7), i.e. the mean of the lowest work pay of the fourth year students is EUR 31.4 (5.4 per cent) lower than that of the first year students. The analysis of the ratio of the net minimum work pay of students (for which they would agree to work after studies) to the net average work pay in Lithuania at the time has revealed the following results: the ratio of the minimum work pay of students surveyed in 2014 to the average work pay in the country in 2014 reached 1.09 (the minimum work pay for which the students would agree to work was about 8.6 per cent higher than the average net work pay in the country at that time), while in 2017, the ratio of the minimum work pay of surveyed students to the average work pay in Lithu- ania at the time stood at just 0.85. The reasons for the minimum work pay of fourth year students (for which they would agree to work) being 15.4 per cent lower than the average net work pay in the country in Quarter 1 of 2017 could be various: one of the reasons could be the fact that, in reality, the labour market and living conditions in the country have not changed (following the introduction of the euro, employees have not felt the benefit of increase in work pay), even though the statistical official average work pay increased (as compared to 2014, at the beginning of 2017 it was as many as 18.2 per cent higher). The interesting fact is that, in 2017, the minimum wage in the country reached 380 euros, i.e. it was as many as 80 euros or 21 per cent higher than in 2014 (since 1 October 2014, the minimum wage in the country stood at 300 euros). It should be noted that, following an increase in the minimum wage in Lithuania, the minimum work pay for which the students would agree to work has not increased. In 2014, the minimum work pay of first year students for which they would agree to work was almost 48 per cent higher than the minimum wage in the country at that time, while in 2017, the minimum work pay of fourth year students was only 30.3 per cent higher than the minimum wage in the country. The criterion of the T Test for Two Independent Samples has also been applied in order to establish whether the differences in means are statistically significant in both cases (analysing the desired work pay of first and fourth year students and the minimum work pay for which students would agree to work after graduation). While applying 223 Business, Management and Education, 2017, 15(2): 211–226 the criterion of the T Test for Two Independent Samples in both cases mentioned, the received p value was higher than 0.05. It is to be concluded that neither the desired work pay, nor the minimum work pay of the first and fourth year students have statistically significant differences. The means were not assessed using Paired Samples T Test, since the samples of respondents (surveyed in 2014 and 2017) were not the same and it is not clear whether the samples include the same respondents. The number of working hours. Having analysed the students’ opinion on the desired work pay, it is advisable to explore the reverse question – on the duration of working time in case the average work pay in Lithuania is received. The analysis of the indicator of the duration of working time while receiving the average work pay in Lithuania has shown that the surveyed students tend to think that the working time of 40 hours per week is the most appropriate. The analysis of statistical distribution of the data of a survey-questionnaire has shown that there are grounds to believe that the opinions of first year and fourth year students regarding the duration of working time while receiving the average work pay of that time coincide: the mean is 38.3 hours (according to the answers of first year students) and the mean is 38.6 hours (according to the answers of fourth year students). To sum up, it is possible to maintain that, in the opinion of young employees (current and potential), the current weekly duration of working hours should be about 1.5 hours shorter. 6. Conclusions and discussion Based on the analysis of scientific literature and the research results of the questionnaire survey, the following summary conclusions and recommendations have been drawn: – Representatives of various areas of science, taking into account the relevant present- day issues, present new perspectives and attitudes on the development of human resources management as well as recommendations to business companies, often combining them with the ideas of psychology, social responsibility and knowledge economy as well as stressing the influence of young and creative employees who are willing to learn and improve in the process of creation of the company’s value. – From the economic point of view, the most important driving force behind the modern economy today is creative, innovative and motivated employees (who are quite often young students or young graduates), therefore, business companies should give special focus to the search for, attraction and retention of new talents, i.e. they should seek efficient solutions of human resources management in order to satisfy needs and expectations of employees at work according to the available possibilities. – The theoretical assumption that the needs and expectations regarding work pay of students who just started their studies (first year students) and those finishing studies (fourth year students) are different has been confirmed: the students at the 224 L. Pilukienė. Importance of motivation and work pay of young employees in the value creation chain of a business company: assessment of changes in and formation of expectations end of their studies (potential employees) realistically assess their possibilities in the labour market, they do not overrate their competences and have a better under- standing of the labour market situation in the country. – Educational establishments help to form the expectations and understanding regard- ing work pay of young potential employees, therefore, the cooperation of various forms between business companies and educational establishments becomes espe- cially important. This would ensure efficient integration into the labour market of young people who are just joining the labour market. – Further areas of research could be related to the analysis of the behaviour in the workplace of young people (hired following graduation): how long does a new employee agree to work for the desired minimum work pay, what is the importance of non-material motivation measures while forming the behaviour in the workplace of a young employee who just graduated and has been hired in the company. – There are some limitations in this research that should be mentioned. Since the research only included 129 students, findings should be confirmed through a larger sample in order to increase generalizability. The data was collected only from Vil- nius University Faculty of Economics, therefore the study needs to be replicated by collecting data from more teaching institutions. The small sample size restricts statistical power statistical power. 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The relationships between formal education and skill aquisition in young worker’ first job, The Manchester School 81(4): 638–659. https://doi.org/10.1111/j.1467–9957.2012.02305.x Laura PILUKIENĖ. At present, dr. Laura Pilukienė works as an assistant with Vilnius University, the Faculty of Economics, the Department of Business. During the period of 2010–2015, assistant has published about 20 scientific articles and teaching books for students. Research interest: human resource management, work remuneration and motivation, business competitiveness, business strategy.