The Influence of Generations on the Relationship between Total Returns and Organization Commitment in Accounting Professionals

Abstract

       The objectives of this research were to study the relationship between total returns and organization commitment as well as the role of generations as a moderator of the relationship between total returns and organization commitment. The data was collected via questionnaires from 500 accounting professionals. The collected data was analyzed by inferential statistics including hierarchical regression. The results indicated that total returns (compensation factors, justice, relational returns) have significant effect on organization commitment (p-value = 0.01). Justice reveals the highest effects on organization commitment (β = 0.288). Furthermore, generations play a significant negative moderator on the relationship between compensation factors and organization commitment and the relationship between justice and organization commitment. This means that compensation factors and justice have significant effects on the organization commitment in generation Y more than in generation X and generation Baby Boom. The results implies that satisfactory in compensation must be under justice and reasonable principles. This is an important motivation for employees, particularly for generation Y employees who will be the major labor forces for organizational development. Organizations should focused on both compensation and justice in order to increase performance competitive advantage.