The Role of Intergenerational Differences in Influencing Perceptions of Salary and Benefits: A Review Study

Abstract

There are at least four generations represented in the modern labor force, each with their own perspectives on work values. The impact of Generation X, Millennials, and Generation Z on the workplace has been significant, posing challenges for organizations in developing a competitive compensation strategy that caters to each generation. The objective of this research review is to examine generational characteristics, conduct a thorough analysis of cross-generational perspectives and preferences, explore influences on compensation and benefits trends, and address the challenges of managing different generations, along with potential solutions. The underlying assumption is that there are shared similarities or differences in these determinants across generations. We conducted a comprehensive review of recent literature on generational cohorts and compensation and benefits to summarize findings from the past five years. This review will also serve as a foundation for future longitudinal research, aiming to uncover the latest insights into trends among organizational cohorts and other related factors, particularly in the realm of compensation and benefits, and how they intersect with other organizational contexts, potentially influenced by socioeconomic events. Researchers suggest that qualitative research or mixed methods, with their more robust methodologies and theoretical study objectives, are the most appropriate approaches to explore generation as an influencing variable in research.