HRM initiatives against the catastrophe of turnover losses of Generation Y at private businesses of 21st century

In the workplace today, Generation Y is crucial. Leaders of industry and managers should develop a strategy to ensure Generation Y retention and effectively solve the crisis of Generation Y turnover (Yu et al., 2025; Hassan et al., 2022). Overt and covert financial losses as well as nonfinancial losses, are included in employee turnover. These expenses are frequently difficult to see and quantify. Employers frequently underestimate the cost of turnover and attribute significant losses to it (Kiernan, 2018). Each generation, notably Generation Y, which differs from older generations and has some extra criteria, requires various retention strategies from leadership and management. Only a few nations, including the Netherlands, Spain, Switzerland and Belgium, are reportedly prepared to deal with the turnover concerns. Unfortunately, emerging nations do not have a lot of strategic thinking, methods or literature.

The Millennial generation never fretted about finding or losing a job. According to Twenge (2013), Generation Y is more productive, and they will have greater success during their service years. They anticipate various things from their services. When these expectations are difficult to comprehend and fulfil, it can lead to employee turnover, unhappiness and anxiety (Glazer et al., 2019; Yamane and Kaneko, 2021; Rajput and Iffat, 2025). As a result, the tendency of Generation Y workers to frequently leave their jobs in the 21st century presents the biggest obstacle for any firm (Glazer et al., 2019; Yamane and Kaneko, 2021). Generation Y tends to change jobs frequently (Gallup, 2017). For all businesses, excessive employee turnover is a severe problem. It seems that Generation Y quit their jobs as they get experience and are expected to contribute to the company.

Most prior research carried out in developing nations did not concentrate on underlying hypotheses (Islam and Saha, 2016). The literature concerning Bangladesh also reveals that the majority of the cases involving these used data from a single industry; however, if data were gathered from several industries, a distinctive picture could be presented (Islam and Saha, 2016). Discrepancies are also thought to exist when representatives from various industries are ignored. Among the few studies, some studies concentrate on boosting various fringe benefits to reduce turnover (Ahmed et al., 2014). Although millennials may have different expectations and goals from older generations due to globalization and technological advancements, the expectations of Generation Y are the same everywhere, including in Bangladesh.

However, it can be very challenging to comprehend why people are leaving the company. Generation Y employees’ intentions to leave a company are influenced by the target group’s needs and job satisfaction. Compared to previous generations, Generation Y has chronic turnover tendencies that result in significant overt and covert losses (Ngotngamwong, 2019; Lyons et al., 2015). In the current workforce, Generation Y is also the generation that is expanding the fastest. Many things draw in Generation Y workers. A thorough analysis of the literature revealed that management efforts and job satisfaction were the most alluring elements for Generation Y workers. Therefore, research objectives were created, which included evaluating the effects of management initiatives on the retention of Millennial employees, taking into account the rising issues of frequent turnover of Generation Y. To identify the mediating function of job happiness between management initiatives and Millennial retention in the private sector as well as the effects of managerial initiatives and job satisfaction on the retention of Millennial employees.

The goal of this study was to establish a causal relationship between management initiatives and Generation Y retention. The management initiative would be taken into account to address this issue. For this study, it is also vital to address job satisfaction as a mediating element between initiatives of management initiatives and Generation Y retention. There has not been any research on the association between these Generation Y retention traits and employee retention because the grids haven’t yet been created. An empirical study is specifically required for the HR division to completely comprehend the need for developing or revising Generation Y’s friendly approach. Leadership, management, and all other interested parties must be aware of the benefits and conditions of their innovative participation in the retention procedure. Finally, the research’s conclusions will contribute to the preservation of the irreplaceable Generation Y in order to lessen the enormous losses, which will be beneficial for all parties.

The paper is decorated as follows: The literature review and supporting theories are described in Section 2. The technique and findings are presented in Section 3; the debates are described in Section 4. The paper is concluded in section five with implications and limitations.

Management initiatives and employee retention are deemed to be essential components for any firm. An organisation must value management initiatives if it hopes to have a good impact on staff retention. Numerous disconnects between management initiatives, staff retention and job satisfaction have been found (Jena and Nayak, 2023). Human resource management (HRM) is frequently used, in particular, to support an administration’s operations. It is necessary to compare their efficacy with other fundamental organisational strategies, such as the innovation strategy (Mihajlov and Mihajlov, 2016). The company should execute more innovative HR practices, driven by an innovation-led HR policy, as opposed to planning and implementing HR practices.

There is evidence that using modern HRM policy affects the organisation’s ability to innovate (Do et al., 2018). New goals and objectives, for instance, may be used to drive innovative performance and system controls. It is suggested that HRM practices, including career management, performance evaluation, reward systems and HR planning, help foster innovation (Ruys, 2013). The effectiveness of innovation in firms also depends on highlighting it when hiring, paying and promoting staff members. Additionally, it has been discovered that recognition and reward programmes that are linked to innovation inspire workers to travel farther and concentrate more on producing new results for their organisations.

According to Oke et al. (2012), the two initiatives of management could assist one another because of well-coordinated, bundled procedures. The empirical findings from Oke et al. (2012) and Goud (2014) corroborate the fundamental hypothesis. The authors made the case that an innovation-led strategy should be in line with an innovation-led HR policy that serves as a management practice (Jena and Nayak, 2023; Do et al., 2018). The largest problem for a leader, according to Oke et al. (2012), is creating a culture that would address managerial efforts and personnel retention (Ode and Ayavoo, 2020).

Emerging strategic HR frameworks and generational subtleties are not adequately addressed in the current literature. Several important studies were left out, such as Lee et al. (2021), who looked at the moderating effects of generation on motivation and retention; Na-Nan et al., who validated a turnover intention instrument for Gen Y in Thailand and Fuchs (2022), who examined job embeddedness and intention to quit among Generation Y. A greater cross-cultural and intergenerational viewpoint would result from incorporating these. Additionally, research by Thompson (2021), Jahya et al. (2020), Laird et al. (2015), Chen et al. (2012) and Solnet (2012) highlighted work attitudes, training and organisational culture as retention determinants. These reaffirm the necessity of thorough frameworks that incorporate organisational responsibility and motivational boundaries for creating retention policies.

High customer churn ruins reputations and disrupts customer flow. About 75% of workers from Generation Y will control the business world by 2025. According to Holtom et al. (2008), most employee turnover research was conducted in the USA, the UK and Australia; therefore, the only effective way to combat the unfavourable trends in turnover is to carry out our research on perspectives from emerging countries (Naim and Lenka, 2018; Ahmed et al., 2014).

On the other hand, job discontent has adverse effects, including unfavourable conduct, a decline in performance, and eventually, employee attrition. Disruptive actions caused by employee unhappiness can harm their productivity, work satisfaction and job retention. Another gap is the lack of a practical and comprehensive grasp of the interactions between different variables and turnover intention. In the current world that is changing so quickly, it is crucial to use fresh, integrated and alluring strategies to keep Generation Y engaged (Graen and Grace, 2015). Employers are failing to inspire and take the necessary actions to keep their key personnel (Wiggins, 2016; Hassan et al., 2023). Prior to now, the majority of studies were conducted in a particular industry using small samples, though the turnover is always changing. It has a dominant paradigm, which it frequently modifies.

Due to the lack of literature on Generation Y, it is necessary to examine employee retention in Bangladesh (Sarker et al., 2017). However, the development of the retention plan is largely the responsibility of human resource management. Because of this, a company’s inability to replace its knowledgeable and active employees suffers significant economic consequences (Do et al., 2018).

The negative impact of high turnover often makes it more difficult to achieve organisational goals. Additionally, when a business loses personnel, it leaves a bad image on consumers and other employees, which lowers job fulfilment (Kangas et al., 2016). The cost of turnover in different industries can be categorized into many areas, such as direct/indirect, visible/invisible, hiring expenses and losses. Many academics advocate for keeping the personalized approach that is appropriate for the younger generation (Islam and Saha, 2016). Only a few formal studies in Bangladesh have examined the influence of various HRM elements on job satisfaction (Rubel et al., 2017). In Bangladesh, only a few researchers have conducted studies on employee retention and work satisfaction (Ahmed et al., 2014). The sample category and smaller sample size selection in Bangladesh-related publications are another drawback. A more thorough analysis was suggested by the majority of the authors (Islam and Saha, 2016). To retain and optimize Generation Y’s genuine potential, it is necessary to understand their practical requirements. Management actions that could result in the retention of key Generation Y personnel and increase job satisfaction.

According to Rivera-Prieto et al. (2022), Weerarathne et al. (2022) and Çelik et al. (2020), boundary conditions – such as organisational justice, leadership style and generational expectations – should be specifically addressed to provide further context. Future conceptual models should incorporate these factors, which mediate or moderate retention efforts. Furthermore, recent research has shown that green HRM practices – particularly green recruitment and sustainable engagement strategies, have a major impact on turnover intention (Islam et al., 2023). To increase the study’s applicability and contemporary relevance, the exclusion of green HRM despite its increasing significance in organisational behaviour literature should be addressed.

According to the central tenet of the social exchange theory (SET), the degree to which various social entities abide by the social norms and the rules of exchange that were implicitly and overtly agreed upon, between two parties, determines the relationship between these entities (Blau, 1964; Homans, 1958; Cropanzano and Mitchell, 2005). The qualities that characterize these partnerships, for instance, are commitment, loyalty and trust. These qualities depend on novel elements that individuals often invest in relationships, such as love, status, knowledge, goods and services. According to the SET, moral aspects of social rules and norms of exchange, such as servant leadership style, are also included. Generation Y perceptions and views are diversified from those of the preceding generations (Ferri-Reed, 2015). It can be anticipated that motivated employees from the Millennial generation would respond to the same management style. Few studies have examined the management and leadership practices that influence Millennial employees’ motivation (Daniels, 2016; Liden et al., 2015).

When organisational or hygienic issues are resolved, there is a reduction in job dissatisfaction, which increases staff retention and job happiness. One of the most well-known content theories in the world of management is the two-factor theory (Herzberg et al., 1959; Mihajlov and Mihajlov, 2016). Herzberg’s two-factor theories’ results and the link between job satisfaction and intention to leave the job frequently conflict; however, it is discovered that both internal and extrinsic factors influence both job satisfaction and retention to some extent (Malik et al., 2012). In light of the foregoing, this study will combine Hertzberg’s two-factor theory with social exchange theories to provide solid foundations for management activities that are expected to retain Generation Y. According to the framework, study hypotheses were created to investigate the relationship between management initiative and turnover intention, which were discovered to be the two elements that Generation Y felt to be most important for retention. It takes into account the goals, gaps, questions and objectives of the research. Job happiness is mandated as a mediator against the retention factors and Generation Y employee retention, which are also discussed below in Figure 1, by both empirical data and theoretical frameworks. Figure 2 shows the research framework of this study. In addition, four hypotheses were formed from the aforementioned debate and proposed model, and they are summarized in Table 1.

This study includes the managerial staff from the largest organisations of private businesses in Bangladesh. One group contained several enterprises with various specialities. Professionals from the banking, food, pharmaceutical, energy, IT, textiles and energy industries willingly took part in the survey. The study’s participants were selected using a simple random selection process. A total of 500 responses were given by professionals at the entry level, middle level and top level. The five-point Likert scale’s elements were changed from texts that had already been published. A quantitative study technique was applied to inspect the relationship between management efforts, job satisfaction and staff retention. The partial least squares structural equation modelling (PLS-SEM) approach was used to examine the data. As per Barroso et al. (2010), the structural and measurement models should be applied separately to the analysis of PLS data. It aims to make clear how each variable under examination is related to the others by creating the model’s standardized regression coefficients (Götz et al., 2010). Before applying SEM, the current study also used descriptive statistics through the use of SPSS.

The demographic features of the respondents differ, as seen in Table 2. The findings of the descriptive analysis and sample profiles provide proof. Demographic characteristics were examined using descriptive statistics. The department, designation, gender, age, degree of education, experience and gross remuneration were the seven factors taken into account while measuring the demographic characteristics. Table 2 below lists the respondents’ demographic information.

The position is differentiated by questioning participants to select the category that best defines their position concerning their place of employment. The data also showed that just 18.66% of the samples had female respondents, while 81.34% of the respondents were male. Based on gender research, male dominance is obvious. The fact that men still predominate in the private sector underlies this hypothetical scenario. Because many departments have a male predominance, more men are working in these firms; hence, the management chooses to hire only male staff.

According to their age range, respondents were further divided into five age groups: 26–29 years, 30–33 years, 34–38 years and over 38 years. Participants selected their age range. According to the data, 32.49% of employees are between the ages of 26 and 29, 22.01% are between the ages of 30 and 33, 45.28% are between the ages of 34 and 38 and 0.21% are older than 38. The table above also shows the participants’ degrees of academic achievement. Master’s degrees are the most common level of education among respondents (70.44%), followed by bachelor’s degrees (29.14%) and Ph.D.s (0.42%). By inquiring about the respondents’ duration of service in terms of years of employment, the respondents’ experience is ascertained. The Table also indicates the respondents’ experience, with the highest percentage having 5–9 years of experience (32.29%), followed by less than 5 years (21.80%), 5–9 years (32.29%), 10–13 years (21.17%), 14–17 years (24.32%) and more than 17 years (0.42%).

Based on the respondents’ wage range, the respondents’ pay was calculated. The first category contains income between 25,000 and 50,000 taka (BDT), the second category includes income between 5,001 and 100,000 taka and the third category includes revenue over 100,000 taka. The group receiving salaries between taka 25,000 and 50,000 had the most representation (42.56%), followed by the group receiving salaries between taka 5,001 and 100,000 (36.90%) and the group receiving salaries above 100,000 had the least representation (205.55%).

We employed the convergent and discriminant validity to estimate the construct’s validity. For each of the first-order constructions, the standardized loadings are evaluated and loadings greater than 0.6 were kept (Birkinshaw et al., 1995). It is advised that the factor loading of the remaining items range from 0.711 to 0.942 in order to achieve appropriate convergent validity, as shown in Table 3 (Chiang et al., 2012). Convergent validity (AVE) was greater than 0.50, and all composite reliability (CR) values surpassed 0.70.

The degree of the constructs’ differences is gauged by discriminant validity. Several methods, including the Fornell–Lacker and HTMT techniques, are used to evaluate discriminant validity. The Fornell–Lacker technique is used to ascertain the discriminant validity as the first criterion. The square root AVE value needs to be greater than the correlations with any other model constructs. All of the AVE’s square roots are larger than their corresponding inter-correlations, as shown. The measuring model appears to be adequate based on the reliability and validity evaluation. Table 4 below shows the results.

To demonstrate that discriminant validity is valid, the HTMT values must be lower than 0.90 (Henseler et al., 2009). The greatest HTMT value, which was 0.263 according to Table 5, was below the cutoff value of 0.90. It has therefore been proven that the constructs have sufficient discriminant validity.

According to Hair et al. (2013), the structural model assessment considers the coefficient of determination (R2), effect size (f2), multicollinearity (inner VIF) and predictive relevance (Q2). The R2 statistic is used to gauge the model’s overall predictive power because a higher R2 value attests to the model’s superior fitness (Götz et al., 2010). According to Table 6, the R2 values for endogenous variables were 0.097 and 0.048. Table 6 further demonstrates that all of the VIF values for the variable are less than 5, demonstrating the absence of a multicollinearity issue among the variables. The effect size was calculated using F2. Indicating a little effect size is a value between 0.00 and 0.15, a medium effect is one between more than 0.15 and 0.35 and a high effect is one over 0.35 (Hair et al., 2016). Given that the f2 is 0.038, the results show that there is little effect of work satisfaction on employee retention. According to Table 6 below, the impact of management initiatives on work satisfaction was 0.051 and the impact on staff retention was 0.046, both of which point to a modest impact because the value is below 0.15. Additionally, a blindfolding test (Q2 statistic) was carried out as an additional assessment of model fit in PLS analysis to check for predictive relevance. Models with Q2 values greater than zero are regarded as having predictive relevance, as suggested by Geisser (1975). According to the outcome shown in Table 6, Q2 had a value greater than zero. This provided evidence in support of the claim that the model’s prediction quality is satisfactory.

The results of the bootstrapping process were utilized to evaluate the hypotheses, and they showed that every hypothesis was statistically significant. Job satisfaction had a substantial impact on Millennial employee retention (Beta = 0.190, t = 4.111 and p = 0.00) and management initiatives also had a significant impact (Beta = 0.208, t = 4.263 and p = 0.00), as shown in Table 7 (see also related text). A strong correlation between management initiatives and job satisfaction was also found (Beta = 0.220, t = 4.928 and p = 0.000), which is shown in the table and the picture.

Table 8 shows that job satisfaction has a significant mediating relationship between management initiatives and Millennial employee retention. The findings demonstrated that management initiatives have a significant and indirect beneficial impact on Millennial employee retention, which is moderated by work satisfaction, with the standardized indirect effect of Beta being 0.042, t = 2.998 and p = 0.003.

Figure 3 shows that job satisfaction plays an important role in the link between management initiatives and employee retention. The p-value (0.003) is less than 0.05, indicating that the indirect effect is significant. This means that management initiatives boost job satisfaction, which helps keep employees. Management initiatives improve employee retention directly and indirectly through job satisfaction. Job satisfaction is a crucial mediator; initiatives increase satisfaction, which then enhances retention. This suggests that if organisations invest in management practices, such as leadership support, recognition and development programmes, employees become more satisfied and are likely to stay longer.

Figure 4 demonstrates that effective management initiatives, such as training, recognition and fair policies, lead to higher job satisfaction. Employees who are satisfied are more likely to remain with the organisation. While management initiatives directly improve retention, their impact is greater when they increase job satisfaction. Most measurement items are reliable, but some job satisfaction indicators, like JS5, are less robust. Employee retention is most successful when management not only launches strong initiatives but also ensures that these initiatives boost job satisfaction.

Reviews of several pieces of prior literature help us to understand that the field of turnover studies is arguably at a precarious crossroads. Studies emphasized conducting a study on the retention versus the difficulties that Generation Y faced by incorporating innovative management ideas in talent management (Hom et al., 2017). It has been discovered that Bangladesh’s retention efforts are woefully inadequate, just like those of other poor nations (Hassan et al., 2022; Ahmed et al., 2014).

Turnover is undoubtedly a very weak field of research and theory. It is necessary to assess and widen the scope of the existing information to link the model and theories. As Generation Y’s turnover rate is on an upward trend, it may be assumed that the best contributions to this broad field are still to come. The current body of literature has made it necessary to preserve solely the interests of the employers rather than both employee and employer interests. As a result, it represents the research’s needs in terms of the practical needs of Generation Y personnel. Matching retention efforts to specific Generation Y needs is important (Graen and Grace, 2015).

Management initiatives emphasize innovation-led HR policy and innovation-led strategy, which have practical benefits for retaining personnel (Jena and Nayak, 2023; Do et al., 2018). Generation Y employee turnover trends are projected to continue; thus, top management should consider recruiting, engaging and retaining Generation Y workers (Kiernan, 2018; Daniels, 2016). When Generation Y are allowed to advance and take on new responsibilities, they are valued (Ruys, 2013). While fulfilling organisational commitments, managers should take advantage of and provide attention that matches the expectations of workers (Daniels, 2016).

Job satisfaction can be both positive and negative to the degree required to comprehend the key elements. According to Herzberg’s two-factor theory and social exchange theory, employees are more likely to be happy and stay at their jobs if they can accomplish their assigned tasks and move closer to their own goals and if organisational leaders can deliver on these realistic demands. Furthermore, innovation-led policies and strategies have been understudied (Oke et al., 2012). Therefore, innovation-led HR policy and innovation-led strategy must be studied as part of management initiatives (Jena and Nayak, 2023; Do et al., 2018). According to Ferri-Reed (2015), management should acknowledge the significant influence young people have on business activities and work to develop a retention plan that ensures the retention of personnel (Goud, 2014). The method of using new designs to make the workplace suitable for the increasing needs of Generation Y (Graen and Grace, 2015).

Additionally, this study needs to consider new multidisciplinary methods. Organisational behaviour, environmental HRM and sociological theories offer fresh perspectives on turnover intention. For example, green HRM practices are crucial in lowering voluntary departures among Generation Y workers who care about the environment (Islam et al., 2023). Additionally, model comparisons might have given the study more depth. Given the hierarchical and nested structure of organisational data, the authors’ choice of PLS-SEM over alternative model specifications such as CB-SEM or multi-level modelling requires explanation. From theoretical premises to empirical testing, a deeper narrative connection between the variables is necessary for analytical coherence.

Furthermore, it is crucial to look outside Western contexts and adhere to Eastern phenomena. Due to the paucity of studies, the majority of non-western nations embraced and dealt with the young generation’s profile without a suitable theoretical foundation. The majority of research and literature was discovered in Western or European contexts. As a result of the varied cultural and contextual conditions of this developing region, the output is incompatible with non-Western (Burton and Peachey, 2014). In Asia, very few studies on the topic of Generation Y’s integrated retention strategy have been conducted (Ahmed et al., 2014).

According to Ferri-Reed (2015), managers and human resource specialists in forward-thinking organisations must design a retention plan that ensures the retention of Millennial workers. Soon, Generation Y will make up half of the workforce; thus, any company organisation must plan to accommodate these new workers (Graen and Grace, 2015). To make the workplaces compatible with the increasing Generation Y expectations, management would need to use the innovation design process. There are a variety of management strategies that can be implemented, such as innovation-driven HRM and regulations that encourage employers to stay in the private sector. Numerous researchers have also admitted that management actions are necessary to keep these important Generation Y employees (Iden, 2016).

In the last decade, the world has been facing chronic turnover problems and an urge to combat the retention of Generation Y. Management initiatives and job satisfaction can reduce turnover intention. Management initiatives may bring greater job satisfaction, which supports and reinforces the job satisfaction and retention of employees. This study is unique and identifies and validates the significant impacts of management initiatives on the retention of the millennial employee via job satisfaction. Secondly, the study reveals the impacts of management initiatives on job satisfaction and thirdly, the substantial positive mediating effects of job satisfaction are also ascertained. In capping, replicating the study in other developing countries may further validate this result. Future researchers may include supervisor relationship and justice as interrelated variables and may test the same study with other generational employees.

As frequent turnover causes massive losses; thus, employee retention needs to be ensured via management initiatives and job satisfaction. Moreover, this study reveals the measuring instruments of employee retention, job satisfaction and management initiatives in the private sector of Bangladesh. Finally, this study conceives a retention model concerning the effectiveness of management initiatives, job satisfaction and Generation Y employee retention in the Bangladesh context. In summarizing the situation, it is expected that government officials and managers in the commercial sector will recognize the importance of management initiatives for the retention of Generation Y. All stakeholders in the private sector would benefit from the study’s results.

This study has numerous implications. This study fills the gaps in the scarcity of present literature on Generation Y perceptions by emphasizing job satisfaction as the mediator. Practically, the study has contributed to policymakers (different private business welfare and development associations) and practitioners in formulating and redesigning the retention strategies in the age of ongoing storms of Generation Y turnover. The study has numerical shortcomings. Firstly, the study merely explores only five multinational companies from the private sector of Bangladesh; as such, the result did not represent the entire country. Secondly, the sample size was not proportionate to reveal the contrast in gender and generational aspects. Finally, the study approach through a cross-sectional design which made the complications to ascertain the temporal relationships Future studies can include some contextual factors like culture, religion, justice and so on.

Finally, future studies should take into account generational comparisons, utilising Gen X or Gen Z as reference points. Future model improvement should take into account interdisciplinary barriers, such as socioeconomic position, industry-specific norms, environmental consciousness (green HRM) and ethical climate. Richer interpretative results may be obtained by repeating the investigation using models that contrast the mediation, moderation and hierarchical regression frameworks. Last but not least, adding more recent works, like Moon et al. (2023), and more international viewpoints can help this study become even more in line with current HRM discussions.