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Employee loyalty among generation Y workers has been focus in many studies as many employees in this generation job hop from one organization to another. One of the main reason found is the opportunity of better compensation and rewards in other organization. Thus, the focus of this study is to investigate the relationship between rewards and loyalty among generation Y. Besides that, previous research stated that through rewards, employee gain motivation to stay committed to the organization. Hence, motivation is studied as the moderator of the relationship between rewards and loyalty. The self-administered questionnaires were distributed to generation Y in the capital of Malaysia regardless of their sectors and level of management. Structural models were constructed for hypothesis testing and the result founds that rewards have a significant relationship with loyalty. This study also found that motivations do not strengthening or weakening the effects of rewards on loyalty.

Generation Y: Moderating Effect of Motivation on the Relationship Between Rewards and Loyalty