Generation Y in the Non-Profit Workforce - Essay Example

This study provides suggestions for non-profit organisations to increase wage pay to employees. Therefore, in researching this workforce, the generation y workforce sheds more light on current employers' structure of effective compensation for this particular workforce (McGinnis, 2011).

This research draws its strength from existing research gaps in this particular topic. Previous research on remuneration differentials has not concentrated on the young and educated workforce. Thus, it is clear that there are research gaps in wages between profit and non-profit organisations. This article summarizes the survey findings on the young workforce, which served as a population of interest in this research. There is an overview of the previous literature and empirical studies exploring non-profit, for-profit remuneration differentials. The article uses the statics of America’s Census Bureau Survey and “cross-section regression” to compare wage pay for for-profit and non-profit. The research of this article contributes information to organizational managers to understand effective compensation to a young educated workforce. Consequently, non-profit managers must have information on how to compensate an educated workforce for motivation (McGinnis, 2011).

The research methodology employs the United States Census Survey statics to study remuneration in differentials for generation y workforce in both profit and non-profit organisations. Further, the methodology combines the “cross-section regression”. Data used is limited to the workforce having a bachelor’s degree, below the age of 30, and working on a full time basis. The study used two types of regressions to examine remuneration differentials among female, and male wages and remuneration of the whites and minorities. There are two variables used; the dependent and independent variables. The dependent variable looks at the annual earnings through the price index to account for twelve-month inflation, while an employee’s gender (one for females and the males consisting of the reference group) established the independent variable. Literature from scholars suggests that non-profit employees get encouragement from organizational goals compared to remunerations. Employees indeed value good working conditions in non-profit jobs (McGinnis, 2011).

The research in the article established that the higher percentage of generation y workforce in non-profit have greater education attainment than the profit workforce. Furthermore, the population of employees that have done Master's and Doctorate is twice the same population in profit organisations. The majority of the Generation Y workforce in non-profit organisations is comprised of females, however, the findings on remuneration suggested that female employees and a particular group, such as racial/ethnic groups received remunerations that are more equitable (McGinnis, 2011).

It is important for current organisations, both profit and non-profit, to understand remuneration requirements for a young and educated workforce. However, important to clarify that, despite low remunerations in non-profit organisations, the educational qualification of the workforce is higher than in profit organisations. It seems that regardless of higher education achievements, such as Master's and Doctorate, there are limited education returns. Therefore, understanding the needs of young and educated employees ensures effective and competitive remunerations, thus, attracting and retaining the workforce.