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1. How does Herzberg’s Two-Factor Theory explain how companies are attracting and retaining Gen Y employees?
Herzberg’s two-factor theory identifies job context as the source of job dissatisfaction and job content as the source of job satisfaction. Hygiene factor in the job context are sources of job dissatisfaction. Motivator factors in the job content are sources of job satisfaction. In this theory, job satisfaction and job dissatisfaction are separate dimensions in the two-factor theory. Taking action to improve a hygiene factor will not make people satisfied with their job; it will only prevent them from being dissatisfied on these matters. Motivator factors are the key link to satisfaction. When motivator factors are substantial, high job satisfaction raises motivation and performance.

After we get a clear picture of Herzberg’s two-factor theory, we can try figuring out how Herzberg’s two-factor theory explains how companies are attracting and retaining Gen Y employees. According to Herzberg’s two-factor theory, the best method to recruit and keep Gen Y is to decrease hygiene factors and increase motivator factors. The surprising fact that accounting firms dominated BusinessWeek’s second annual ranking of the best companies for new college graduates proves this point. Because these accounting firms are among the first to pay close attention to how to attract and keep Gen Y. Ernst & Young uses Facebook to let prospective employees talk freely with real ones. Deloitte will show a rap video about office life—made by interns—to give students a realistic view of the company. And PWC requires some bosses to get a second opinion on their evaluations of new hires to make sure the feed back is clear enough, the goals ambitious enough for kids who are uncomfortable with ambiguity. All these things accounting firms did are motivator factors resulting in job satisfaction. They provided Gen Y with recognition, advancement and growth. So it is rational

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