An Analysis of Multigenerational Issues of Generation X and Y Employees in Small- and Medium-Sized Enterprises in Thailand: The Moderation Effect of Age Groups on Person–Environment Fit and Turnover Intention

Abstract

Multigenerational employees can evidently impact human resource management practices in terms of effective employee retention. Arguably, a high turnover intention of young employees can hinder a company’s human resource development, while a high volume of retirement of senior employees can create a skill deficit and even a labor management dilemma. This study explored how a supportive work environment can retain employees of different age groups in Thailand’s small- and medium-sized enterprises (SMEs), particularly Generation X and Y. It modeled a supportive work environment that impacts the behaviors of Generation X and Y employees, taking into consideration the relationship among factors such as person–job fit, person–group fit, person–supervisor fit, person–organization fit, person–environment fit, and turnover intention. This paper statistically analyzed a set of data drawn from an attentive survey of a total of 400 employees of SMEs in 4 populous provinces in Thailand using structural equation modeling (SEM) and multigroup analysis (MGA) with the moderation effect of generations. This paper then found that person–job fit, person–group fit, person–supervisor fit, person–organization fit, person–environment fit, and turnover intention can influence an employee’s intention to remain in his/her job. Additionally, the relationship manipulation among the aforementioned variables might influence Generation X and Y employees differently. Under the circumstances, supervisory support with less group involvement may encourage the retention of Generation Y employees, whereas a sufficient focus on job suitability could improve the retention of Generation X employees.