Millennials’ intention to stay and word-of-mouth referrals
| Date | 28 August 2019 |
| Published date | 28 August 2019 |
| DOI | https://doi.org/10.1108/EBHRM-03-2019-0021 |
| Pages | 60-78 |
| Author | Decha Dechawatanapaisal |
| Subject Matter | Hr & organizational behaviour |
Millennials’intention to stay and
word-of-mouth referrals
Decha Dechawatanapaisal
Chulalongkorn Business School, Faculty of Commerce and Accountancy,
Chulalongkorn University, Bangkok, Thailand
Abstract
Purpose –The purpose of this paper is to investigate the mediating effect of organizational identification in
the relationship between person-organization fit and intention to stay as well as word-of-mouth referrals. The
study also examines the role of perceived external prestige as a moderator of the relationship between
organizational identification and intention to stay and word-of-mouth referrals.
Design/methodology/approach –Data were collected from 2,649 millennial employees working in various
companies located within the Central Thailand Industrial Estates. The hypothesized relationships were tested
and analyzed by means of a confirmatory factor analysis, structural equation modeling, hierarchical
regression and a bootstrapping procedure.
Findings –The results revealed that the direct relationships between person-organization fit and intention to
stay as well as word-of-mouth referrals were found to be partially mediated by organizational identification.
In addition, perceived external prestige was found to have a moderating effect on the relationship between
organizational identification and word-of-mouth referrals, but found no effect on employee retention.
Research limitations/implications –The current research took place among the millennial workers in
Thai organizations, which needs to be extended to other generational cohorts or different culture settings for
more generalization.
Practical implications –The results imply that managers should routinely assess and monitor
person-organization compatibility, and ensure that corporate cultures, values and norms are properly
communicated and mutually shared among the millennial workers. The aim is to inspire them to perceive
better fits and proudly identify with their workplace. Such efforts are likely to induce not only retention, but
also should encourage word-of-mouth referrals.
Originality/value –This study extends existing knowledge by assessing the relationships among person-
organization fit, organizational identification and perceived external prestige as well as their impacts on
intention to stay and word-of-mouth referrals by millennial employees, which has not been extensively
investigated in the literature.
Keywords Organizational identification, Generation Y, Person-organization fit, Intention to stay,
Perceived external prestige, Word-of-mouth referrals
Paper type Research paper
Introduction
Generation Y, also known as Millennials (born from 1981 to 1999), are the largest
generational group in today’s workforce (Stillman and Stillman, 2017). They have been
transforming the workplace for the past decade or so, emerging on the scene with new
attitudes and striking characteristics that influence organizational behaviors. Importantly,
they are starting to mature into older and higher-ranking professionals, and playing
important roles in organizations.
According to the generational theory, Millennials are on the whole well educated, skilled
in technology, very self-confident, able to multi-task (Howe and Strauss, 2007; Twenge,
2010). They have high expectations for themselves, and prefer to work in teams, rather than
as individuals. They have a positive reputation for their energy, drive and skill, but are often
criticized for having a short attention span and less commitment to their employing
organization. They require more social interactions, connectivity, immediate results in their
work, opportunities to excel and speedy advancement, compared to the generations before
them (Gursoy et al., 2013; Lancaster and Stillman, 2005).
With these remarkable values and characteristics, employers may need to be aware of
employees’perception and attitude relating to retention issues in the organization.
Evidence-based HRM: a Global
Forum for Empirical Scholarship
Vol. 8 No. 1, 2020
pp. 60-78
© Emerald PublishingLimited
2049-3983
DOI 10.1108/EBHRM-03-2019-0021
Received 5 March 2019
Revised 17 June 2019
Accepted 18 June 2019
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2049-3983.htm
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EBHRM
8,1
Previous surveys also report that the millennial employees in the Asian Pacific region have
the shortest job tenure compared with the older generational workforces; they have 18
months of average job tenure, compared to 4 years and above for the older cohorts (Laird
et al., 2015; Sheahan, 2007). The issues of increased job mobility and the shortage of young
talent in recent years have compelled managers and human resource practitioners to
reconsider what strategies or psychological efforts they will use to attract, cultivate, manage
and retain members of the millennial generation now and into the future. In highly
competitive labor markets, attracting and retaining skilled workers, particularly Generation
Y, has become increasingly crucial to building sustainable competitive advantage, since
they are the major force in today’s organizations (Stillman and Stillman, 2017).
The present study therefore aims to address the above issues by considering the
literature that focuses on employee attitude and mindset toward their organization, as well
as its impacts on workforce retention and referrals of their place of employment to others. It
is argued that Millennials’organizational identification acts as a potential mediator that
intervenes between person-organization fit and intention to stay, as well as word-of-mouth
referrals. This research also proposes that the success of organizational identification in the
motivation of retention and word-of-mouth referrals of millennial employees may depend in
part on their perceived external prestige. Such relationships among these prosocial
identities, employee referrals and work-related outcomes have been rarely examined, despite
its potential implications for organizational practices (Andrade and Westover, 2018; Kang
et al., 2011; Uen et al., 2015; Van Hoye, 2013).
This study contributes to the literature by examining thelinks among person-organization
fit, organizational identification and perceived external prestige as well as their impacts on
intentionto stay and word-of-mouth referralsin a unique context. The hypotheses were tested
through millennial employees whoare the main workforce in any organization. Few empirical
studies have been based on samples from this particular generational cohort, especially in
non-Western work culture. To extend the global relevance of organizational theories in
managing nationally diverse workforces, it is important to understand how work attitudes
and organizational efforts impact employee outcomes in Asian countries such as Thailand,
which are more collective oriented (Hofstede, 2001).
The next section provides a theoretical foundation for the research, leading to hypothesis
development. The research methodology and sample are then presented, and the findings
are analyzed and discussed. The paper concludes with a discussion of implications, the
study’s limitations and avenues for future research.
Theoretical background and hypotheses development
The millennial workforce
Age differences in work values and preferences are generally explained by generational
differences (Lancaster and Stillman, 2005). A generation can be defined as a group of people
of a similar age who experience the same significant events within a given era or period of
time (Strauss and Howe, 1991). Events include political issues, socio-economic
transformations, societal trends, technology changes, and feelings of scarcity or security
(Laird et al., 2015; Zemke et al., 2000). Members of a generational cohort share important life
events, and also experience them at a similar developmental stage. Shared experiences
during these developmental stages shape their generational characteristics and worldview,
which, in turn, not only drive their attitudes and values concerning various issues
(Glass, 2007), but also influence work preferences and expectations that they may have of
their workplace or society (Stillman and Stillman, 2017).
Millennials (born from 1981to 1999) have a positive reputation for their energy, drive and
demands they place on their work environment, but are often criticized for having a short
attention span and less commitment to their employing organization (Gursoy et al., 2013;
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Word-of-
mouth
referrals
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