Gen Y's cannot be motivated ONLY through Compensation

Before I dwell on the subject, I would like to take you briefly through the history

The Baby Boomers (1940's - 1950's) were brought up in a time of immense chaos and war including great depression. Their focus was on stability, providing quality education to children and owning a House. In general, they were risk averse. Due to the absence of Internet, the information exchange was much slower, and their awareness were very limited.

Baby Boomers bought up X's conservatively and taught career goals and dreams were built on hard work and through obtaining a stable job. Baby boomers had, at least, a couple of children and had managed to secure only one house*. They lived in a smaller house and with many members in the family had to share every bit of corner. So, it may not be their dream career, but they are required to bring home money and raise a family

On Gen X they didn't have much of luxury of having their Own Room, transport when they grew up. They knew the value of money when they had to share the favorite piece of cake or cookie with their siblings. Gen X with older sibling had to re-use clothes, books, and Toys of their elder one's. Gen X did odd jobs while studying to earn the extra penny to fund their entertainment or hobby.

Gen X entered the workforce during early 1990's, and that was time economy started to grow leaps and bounds. Asian GDP rose by 250% from 90's to 2000. Gen X benefited from the growth; they made wealth in a decade which baby boomers couldn't in their entire lifetime. Not only they possessed home but also purchased additional property. Gen X has few children. Car's, Holidaying and affiliation to material things is a norm.

On Gen Y they had all the luxury to start with; they have probably not seen the pain of what it takes to meet ends. The dot com and internet evolution has practically changed all aspects of life. From Education to Entertainment there has been a massive transformation. Y's has been brought up in the most modern, up-to-date, forward-thinking culture in history. Y's grew up being told they can be anything. Teachers and parents allowed it. They gave the praise for the horrible art and glorified underachievement.

The University of New Hampshire management professor Paul Harvey conducted extensive research on Gen-Y, and in his conclusion, he stated as a generation inhabit a “very inflated sense of self” that leads to “unrealistic expectations” and “constant disappointment.”

Y's entering the workforce now with their parent's fortune of having a house to stay, Car to drive. The earnings are practically for pursuing a passion hence the motive was not to earn and save but rather find value and purpose in what they do. The stability and safety are well-taken-care-of as they not only inherit X's wealth but also some portion of Baby boomer's wealth.

Y thinks they shouldn’t have to start from the mailroom or the front desk at a job or a transactional type of work. They believe they have studied from reputed schools & college and possess a good degree to start with higher end work, They should be praised for their personality and valued for the high work ethic

Y's were brought up with endless possibilities; inspired by innovation and creativity, the story of Steve Job's and Bill Gates have a high impact on them. For these above reasons, Compensation and benefits are not among the top ranks.

If compensation is not the only motivational factor for Gen Y's so what is it.

It's a combination.

Gen Y's need independence and autonomy, that's why they value Work Life Balance, Flexible Timing, and a great place to work. They liked to be developed and coached. They like to innovate, even if the Jobs are pretty routine and transactional, if you provide a platform or encourage them to innovate or think creatively, they would highly appreciate. They are highly mobile; they would like to move around different countries. They are explorers. They are also looking to get promoted quickly. They get bored too fast and changing job's, and companies are norm.

Gen Y's need attention and importance, coach them often, challenge them often, interact with them often through various social media and keep them motivated.