Abstract
This paper acknowledges that Generation Y (Gen-Yers), who have grown up in a world of convenience
and easy access to information, are more complex to lead and to understand than generations before
them. Gen-Yers have entered the labour market at a time when the current labour force is aging in the
world and in South Africa. Gen-Yers are working with forty to sixty-year-olds and in some cases
supervising employees old enough to be their parents. If unhappy with work circumstances Gen-Yers
change careers fast, thus creating frustration for employers struggling to retain and recruit talented
high-performers. According to the report for the Future of Small Business Management (2007) issued
by the Institute for the Future (IFTF) based in California which has forecasted emerging trends affecting
the global marketplace for 40 years, Gen-Yers, will emerge as the most entrepreneurial generation ever
in the next decade. These highly independent individuals will rather be small business owners or
freelancers and will choose not to work for large corporations. What are the leadership challenges
facing South African companies when they engage with Gen-Yers? Firstly, this paper explores the
concept Gen-Yers, as discussed in the theory. Secondly the paper further explores possible conflicting
areas between current leadership practices and Gen-Yers. The paper concludes by supporting the value
that Gen-Yers can bring to companies and suggests some practices that can be adopted by leadership
to engage and motivate them and at the same time ensure that their companies stay ahead of
competitors by keeping Gen-Yers motivated to stay in their employment. A theoretical model is
suggested for testing Gen-Yers tenure of employment relationship.