REFRAMING GENERATION Y RETENTION IN THE DIGITAL WORKPLACE: THE BUFFERING ROLE OF IMMERSIVE TECHNOLOGY

This study examines how Generation Y characteristics influence employee retention and whether immersive technology moderates this relationship in technology-oriented organisations. Grounded in generational theory, psychological contract theory, and socio-technical systems theory, the study proposes that immersive technology serves as both a direct predictor and a contextual moderator of retention. Primary data were collected from 404 Generation Y employees working in IT and technology-enabled firms across Tier-1 and Tier-2 cities in India. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to test the proposed relationships. The findings show that Generation Y characteristics negatively affect retention when organisational systems fail to meet employee expectations, while immersive technology has a significant positive effect on retention. Moreover, immersive technology weakens the negative relationship between Generation Y characteristics and retention, indicating a buffering effect. The study highlights the strategic role of digital workplace transformation in improving Generation Y employee retention.