The purpose of this paper is to explain Frederick Herzberg’s two-factor theory and apply it to today’s working society. First, Herzberg’s two-factor theory is explained in detail, and then each generation is briefly analyzed. Suggestions are then made as to how to retain employees in today’s free market society. By looking at Herzberg’s two-factor theory, one can determine how motivated an employee is at the workplace. Also discussed are motivators and hygiene factors and how these are applied in the workplace. The paper then gives a brief summary of each working generation; Silent Generation, Baby Boomers, Generation X, and Generation Y. Although there is no clear cut answer on how to retain employees in today’s society, this paper can help better understand why employees from different generations stay or leave.
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