Abstract
Employee satisfaction is widely recognized as a crucial psychological construct that significantly affects individual performance, employee retention, and overall organizational effectiveness. With the rapid entry and growing dominance of younger generations in the workforce, understanding generational differences in employee satisfaction has become increasingly important, particularly within industrial settings. This empirical study investigates the level and determinants of employee satisfaction among Generation Z and Millennial employees working in industrial organizations in India. The study adopts a mixed-method research design, combining both primary and secondary data sources. Primary data were collected through a structured questionnaire administered to 220 employees drawn from manufacturing and allied industrial sectors, while secondary data were obtained from scholarly literature, industry reports, and psychological studies. The study examines multiple dimensions of employee satisfaction, including work environment, leadership style, compensation and benefits, work–life balance, recognition, and opportunities for career growth. Data were analysed using descriptive statistics, independent sample t-tests, and Pearson correlation analysis. The results reveal statistically significant differences in satisfaction patterns between Gen Z and Millennial employees. Findings indicate that Generation Z employees place higher importance on work–life balance, psychological well-being, and meaningful work experiences, whereas Millennials demonstrate greater concern for job security, stable income, and long-term career advancement. The study underscores the necessity for organizations to adopt generation-sensitive and psychologically informed human resource practices. By addressing the unique expectations of different generational cohorts, industrial organizations can enhance employee satisfaction, mental well-being, and long-term workforce sustainability. The findings offer valuable insights for organizational psychologists, HR professionals, and policymakers involved in workforce planning and employee development.
Keywords: Employee satisfaction, Generation Z, Millennials, Industrial psychology, India
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