Motivational factors and Leadership preferences of the Millennial generation : Unlocking the potential of our future leaders

Abstract: A lot of effort is put into diversity by organizations today, but the diversity question mainly focuses on gender, ethnicity, cultural and beliefs (Robertson, et al., (2017), while one of the most daunting diversity challenges has been proven to be diversity between generations, which often goes overlooked and unaddressed. A new generation represent an increasing share of the work force and many of them are already today positioned in leading positions, aspiring for leadership positions or aiming to reach for management positions to be able to do difference. Organizations that understand how to successfully address generational conflict and leverage each generation’s strengths will be better able to keep employees motivated and productive amidst the social and economical changes.   This study aims to explore the leadership preferences and motivation factors for the Millennial Generation, in order to unlock their potential and be able to bridge this knowledge gap. The preferences were examined through a survey, targeting a study group of millennial knowledge workers with various backgrounds from different companies to be able to dismiss possible bias reflecting different cultures. The survey was performed by adopting items from the Multifactor Leadership Questionnaire (MLQ), based on Bass’ (1985) Transactional – Transformational leadership theory and the Career Orientation Inventory (COI) reflecting Schein’s (1985) theory about career anchors.   The survey was delivered through several channels and in the end a sample group of 105 Millennial knowledge workers were included in further analysis. An Explorative Factor Analysis (EFA) was conducted to determine the underlying structure among the variables in the analysis. Since this research is based on previous studies (Blom, 2010), the methodology is chosen as a confirmatory approach with Confirmatory Factor Analysis (CFA) to show how well the model fits the data. A Structural Equation Modelling (SEM) is performed to evaluate the relationship between the variables from Leadership Questionnaire (MLQ) for Transactional and Transformation Leadership theory and Career Orientation Inventory for Career anchors.   Findings by Blom, (2010) reveal that the Millennial knowledge workers prefer leadership dimensions that involve intellectual stimulation and charisma, which correspond to a transformational leadership style compared to a transactional leadership style. This type of leadership focus on the change in individuals and creates valuable and positive changes, which inspires towards both common and individual goals. Similar results were obtained in our study and the relation with motivating factors shows that the sample group with higly educated people in the knowledge sector are motivated by having meaningful purpose with their job. They also wish to reach administrative positions in their companies and are interested by the thought of create and manage their own business. The interrelation between these factors determines the degree of satisfaction which is directly linked to the relationship between motivation and productivity. This is why it shall be one of the highest priorities of each organisation to find how to motivate their employees on an individual level, it is directly connected to productivity. Key words: Millennials, Transformational Leadership, Transactional Leadership, Career Anchors, knowledge workers