Effects of Organizational Culture and Pay Levels on Employee Retention: Focused on Generational Difference

Myeongju Lee, Kyetaik Oh and Hyunok Kim ()
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Myeongju Lee: Department of Business Administration, Gyeongsang National University, Jinju-si 52725, Gyeongsangnam-do, Republic of Korea
Kyetaik Oh: Departments Social Policy Research Division, Korea Labor Institute, Sejong-si 30147, Chungcheong, Republic of Korea
Hyunok Kim: Department of Business Administration, Kumoh National Institute of Technology, Gumi-si 39177, Gyeongbuk, Republic of Korea

Administrative Sciences, 2025, vol. 15, issue 4, 1-19

Abstract: Research on generational differences in the workplace is important as it leads to more effective recruitment, retention, and employee wellbeing in terms of human resource management. This study investigates whether there are differences in perceptions of turnover intention, pay level, and organizational culture between different generational groups. First, this study identifies the relationship between pay level and turnover intention. Second, it confirms the moderating effect of organizational culture on the relationship between pay level and turnover intention. Finally, a three-way interaction analysis was conducted to determine whether these relationships differed between Baby Boomers, Gen Xers, and Millennials. As a result of the empirical analysis, the millennial generation showed higher turnover intention than other generations. It was confirmed that the effect of hierarchical culture was greater than that of pay level on the decrease in turnover intention in the millennial generation than in other generations. In other words, it was found that as the hierarchical culture weakened, the turnover intention of Millennials decreased more significantly than that of other generations. Based on these findings, we propose recommendations for understanding Millennials in the workplace and managing generational diversity.

Keywords: generational differences; hierarchical culture; millennials; pay level; turnover intention; employee wellbeing (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2025
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