Introduction
Background
American organizations operate in a highly competitive business environment, facing both local and international challenges. Leveraging human capital is a crucial strategy for gaining a competitive edge and achieving business objectives (Noe et al., 2017).
Employees play a critical role in determining an organization’s performance in the marketplace. Therefore, organizations must develop strategies to attract individuals who can enhance their competitive advantage and improve overall business performance (Noe et al., 2017). With China’s economic rise, the U.S. faces intense international competition as it seeks to sustain its economic power (Ernst & Haar, 2019). The American workforce is thus a key driver of future economic growth, and (FGAs) represent a significant demographic that can contribute to this advancement.
However, First-generation Americans (FGAs) face significant challenges that may discourage them from joining certain organizations, particularly in light of the achievement gap, workplace diversity, and work-life balance concerns (Abrego, 2011).
The field of First-Generation American studies, which often intersects with higher education, sociology, and ethnic studies, is characterized by the work of influential scholars such as Rendo with the development of her Validation Theory (1994), and Tinto, known for his research on student integration and socialization models (2024).
Based on their findings and insight from other influential scholars reviewed in the next chapter, this study develops a series of evaluation questions to assess how American employers in Southern California can directly address these challenges to attract FGs, enhance the appeal of American organizations to FGA job applicants, and leverage their potential as a source of competitive advantage.
A survey conducted in Southern California as part of this investigation indicates that training and development opportunities are key factors in attracting FGAs to organizations. Additionally, initiatives promoting workplace diversity and work-life balance play a significant role in their decisions to join specific companies.
The concluding result of this investigation also highlights the need for scholars to conduct additional research on the many aspects in which the academic and professional worlds can help enhance the productivity of FGAs in the workplace in a rapidly changing, highly competitive environment.
Literature Review
This chapter examines current research on FGAs and the labor market. Its purpose is to identify key theories and concepts relevant to the research topic. These theories and concepts contribute to the current study, which seeks to determine how American employers can attract FGAs to their organizations.
Education prepares students to be active members of the professional world. As early as 2005, Ernest Pascarella and Patrick Terenzini (2005) identified key factors influencing educational outcomes for diverse student populations, including those that specifically benefit first-generation students. Their findings, which range from diversity, through community colleges, to new theories of human development, already prefigure the problems discussed later on in the ample professional literature on the topic of FGAs and the workplace.
Employees and Organizational Performance
Employees are key organizational stakeholders, and their impact on firm performance must be examined. Macey et al. (2011) argue that employees contribute to firms’ success by enhancing productivity and helping achieve business objectives. Kumar and Pansari (2016) further suggest that highly engaged employees improve organizational performance significantly. According to Noe et al. (2017), employees drive organizational performance in the marketplace through productivity. These findings highlight the essential role of human resources—without employees, organizations would struggle to meet customer needs and expectations. (Kumar & Pansari, 2016)
Innovation is one of the most critical ways employees enhance organizational performance. In a market characterized by shifting consumer preferences and intense competition, innovation gives organizations a unique competitive advantage. Herrera (2015) asserts that innovation is the key driver of modern organizations’ success and that firms prioritize hiring employees who can foster innovation, improve overall performance, and remain competitive.
Performance Factors
While employees can provide organizations with a competitive advantage, their effectiveness depends on various factors. Liao et al. (2009) argue that psychological factors play a crucial role in employees’ ability to perform in the workplace. They suggest that perceived organizational support and psychological empowerment enable employees to perform at the highest level and improve their success. Employees who perceive the organization as supportive of their engagement in the work environment are likely to perform better than workers who believe they are not receiving enough support from the organization (Chandrasekar, 2011).
Saechao et al. (2012) note that effective workplace diversity management contributes to employee well-being and improved performance. Further, Anitha (2014) asserts that a workplace that fosters psychological well-being enhances employee productivity. (2014). Psychological factors are key determinants of employee performance and influence how employees engage with their work (Dugguh & Dennis, 2014). Their findings suggest that employees are more likely to work for organizations that create supportive work environments that promote psychological well-being.
Millennial Preferences and Benefits in the Workforce
Millennials are a significant part of the modern workforce. They expect to be treated as valued members of an organization with leaders who engage openly, communicate effectively, and encourage their contributions. According to Myers and Sadaghiani (2010), they prefer charismatic leadership over authoritative management and seek work that is meaningful to them. Andert (2011) argues that millennials feel more valued when working under charismatic leaders because they value the opinions of these workers, engage in open communication to listen to their ideas, and communicate team goals and objectives.
According to Smith (2010), work-life balance is a major priority for millennials and often outweighs salary considerations. He argues that American psychologist McClelland’s theory on Motivational Needs and Maslow’s hierarchy of needs theory offer insights into why work-life balance is critical for most millennials. The quality of an individual’s work, productivity and performance in the workplace, and job satisfaction are outputs of a healthy work-life balance. Ehrhart et al. (2012) later confirmed this perspective, suggesting that organizations offering strong work-life balance initiatives are more likely to attract and retain millennial employees. They concluded that as this generation enters the labor market, firms must adapt by providing flexible work environments that support well-being and job satisfaction.
Benefits of a Young Workforce
Singh (2013) suggests that millennials’ ability to think differently and interact across generations fosters innovation, a crucial factor for businesses competing in fast-changing markets. Jerome et al. (2014) make a similar claim, noting that millennials bring creativity, innovation, and technological expertise to organizations. Additionally, millennials’ proficiency with technology enhances business efficiency and customer service. Their familiarity with digital tools, including social media, allows organizations to better understand consumer needs and optimize their offerings.
According to Myers and Sadaghiani (2010), millennials prioritize sustainability, often driven by altruistic values. As a result, organizations that incorporate sustainability initiatives into their strategies benefit from millennial employees’ support and insights, ultimately enhancing their long-term success. By understanding and addressing millennials’ workplace preferences, employers attract and retain top talent while leveraging their unique skills to drive innovation, technology adoption, and sustainability Ehrhart et al., 2012.
First-Generation American (FGA) Challenges in the Workplace
Additionally, the job market is seeing a substantial increase in millennial FGAs and, due to their circumstances, face significant barriers in securing jobs that match their skills and expectations.
The American school system often fails to support FGA children, particularly those learning English as a second language, hindering their competitiveness. Boykin & Noguera (2013) noted that a major obstacle to the achievement gap between white Americans and minorities is the limited educational and economic opportunities. Furthermore, some employers exclude FGAs from labor law protections, and discrimination from colleagues and customers can negatively affect their well-being and job satisfaction (Sayce et al., 2012; Stephens et al., 2014).
Cultural challenges further complicate FGA integration into the workforce. Many FGAs struggle with social acceptance due to immigrant stigma, making it challenging to build professional relationships. However, Crosnoe and Turley (2011) conclude that FGAs often tend to outperform their peers in school. They refer to this phenomenon as the immigrant paradox because it occurs despite most immigrant families having significantly higher social and economic opportunities than disadvantages.
Noticeably, consumers are increasingly becoming more concerned about how the practices of organizations impact societal well-being (Berry et al., 2010). The heightened attention to how these organizations treat their employees shows that there is a public concern pressuring them to create conditions that enhance the well-being of their workers. The media’s negative coverage of organizations’ employment practices damages their reputation in the marketplace and may push many toward their rivals. For example, American organizations such as Walmart have often been criticized for poor pay and a lack of gender equality in their pay structure. Instead, developing a corporate culture that values social responsibility responds to consumer needs and preferences and provides a competitive advantage to firms in a marketplace (Hickman & Silva, 2018).
To address these challenges, corporate culture plays a crucial role in attracting and retaining FGA talent. Tseng (2010) recommends fostering a supportive and equitable work environment to help FGAs overcome systemic barriers while benefiting organizations seeking a diverse and innovative workforce. Rafaeli et al. (2012) concur that companies prioritizing diversity, equality, and employee well-being create a competitive advantage. Factors shaping corporate culture include legal regulations, market competition, consumer expectations, and leadership values. Markos and Sridevi (2010) found that organizations with inclusive cultures not only improve employee satisfaction but also enhance creativity, collaboration, and overall business success.
Method
This chapter outlines the data collection and analysis methodology, covering the research paradigm, design, population and sampling method, data collection instruments, process, analysis techniques, and ethical considerations.
Based on the literature reviewed earlier, the study follows a conceptual, interpretivist paradigm framework in which realities are viewed subjectively in relationship to their environment. Goldkuhl (2012) argues that, unlike the foundationalist approach, there are no “correct” or “incorrect” models in the interpretivist paradigm, but they should be judged based on how they interest those involved. Therefore, the present study derives its constructs from the in-depth examination of the challenges facing millennial FGAs in the workplace by interviewing first-generation employees and managers to understand how organizations can attract and retain FGAs.
According to Zikmund et al. (2013), a qualitative design describes a scientific approach that allows researchers to gain an interpretive and descriptive understanding of a social and cultural phenomenon. Among the different types of qualitative research designs, this study focuses on a phenomenological approach to explore the workplace experiences of FGAs. According to Alase (2017), qualitative phenomenology is an approach that examines and describes things as they exist as an essential component of the world where they are living. This method gave an in-depth understanding of social and cultural factors influencing FGA workplace engagement.
The study involved 25 participants, four managers and 21 FGAs, from various for-profit organizations. A snowball sampling technique ensured participants met specific criteria relevant to the research objectives. In-depth interviews were conducted as the primary data collection method, but due to COVID-19 restrictions, only phone interviews were used because no personal contact was possible. To prevent data loss, conversations were recorded and transcribed for analysis. Data were analyzed using thematic analysis, a six-step process described by Vaismoradi et al. (2013), which includes familiarization, coding, theme generation, theme review, definition, and writing.
This researcher created shorthand codes to describe the contents of the scripts, encoded the data to emphasize selected phrases and sentences, and labeled them to identify patterns and key themes from the interviews.
The participants were informed they could opt out of the data collection process if they felt uncomfortable. Confidentiality was enforced, ensuring participants’ rights and data privacy.
Results
This research aimed to explore the experiences of millennial FGAs in the workplace and how organizations could implement policies to become more attractive to them. Accordingly, the survey separated the respondents into two categories: FGA employees and managers representing the interests of the corporation. The results were organized into three themes: factors that attract FGAs to organizations, the role of training and development, and the role of diversity management. The findings were categorized into six key themes as seen in Table 1.
FGAs
Opportunity To Be Impactful
FGAs are drawn to organizations where they feel their voices are heard, their contributions are valued, and they have opportunities for career growth. Reciprocity plays a crucial role in their decision-making. Since the workers derive mental stability benefits from a harmonious work environment, they reciprocate these benefits by enhancing their commitment. In other words, employees see themselves as part of the system, not outsiders.
Workplace Initiatives for Attracting FGAs
Many FGAs felt organizations lacked initiatives promoting fairness and equality. Participants felt that promoting such initiatives would not impact them in any way; however, they emphasized that it could play a crucial role in making workplaces more productive. They do not seek preferential treatment but rather equal opportunities based on merit. Some respondents highlighted concerns about systemic inequalities and the need for inclusive policies in their work environment.
Bilingual Ability
FGAs observe that organizations that hire individuals who can communicate in other languages have a competitive edge due to the increasingly globalized economy. Many argue that bilingualism is a skill that leverages organizational benefits over and above contributions from average workers and that hiring FGAs offers additional value without increased costs.
Inclusivity in Cultural Exploration and Recruitment
FGAs report a lack of cultural inclusivity in their organizations. They often feel like outsiders and struggle to adapt to dominant American workplace cultures due to the absence of integration efforts. However, as many respondents claimed that inclusivity no longer matters to them, it could be interpreted as accepting the situation and their position in the American workforce. Moreover, they added that they should not be judged based on their historical or cultural background. Instead, they should be given equal opportunities to serve based on merit.
Motivation and Identity
FGAs seem primarily motivated by their parents’ sacrifices and the desire for self-improvement. However, they argue that although their complexion or physical features may depict them as different, their unique capabilities could be stretched to achieve even better results when necessary. All 17 FGA respondents supported this theme.
Managers
Familiarity with FGAs
All managers expressed their familiarity with the term FGA and said they recognized this demographic. The implication is that FGAs are spread across American organizations, serving in different capacities. However, most managers noted that identifying FGAs initially could be challenging due to generational and racial diversity.
Work Ethic of FGAs
Managers noted that FGAs tend to be hardworking, committed, and deadline-oriented. They also value organizational harmony and cooperation, contributing to a stable work environment. Such viewpoints show the central role that FGAs play in meeting corporate goals.
Recruitment of FGAs
Companies prioritize merit-based hiring over cultural background. Most manager interviewees asserted that their organizations did not have specific criteria for fostering recruitment of FGAs since recruitment was based on merit, devoid of any inclination towards any cultural background considerations. One respondent mentioned, “In my company, we are an equal opportunity employer; therefore, we cannot enforce laws to employ those who have failed the minimum set qualifications.”
While no specific policies exist for recruiting FGAs, some managers suggested that organizations should explore more effective strategies to attract them due to their strong work ethic.
Leveraging FGAs’ Unique Experience
The uniqueness of FGAs lies in their cultural diversity. For instance, they possess capabilities in bilingualism and can work in different settings where a firm has established its subsidiaries. However, as respondents expressed, work competence and skills are ranked above cultural diversity. For this reason, all four respondents argued that they could not leverage FGAs’ skills in cultural diversity if they failed to meet other criteria for recruitment.
Several managers acknowledged the challenge of integrating diverse cultures into dominant corporate practices. Despite FGAs’ bilingual skills and cultural diversity, many organizations didn’t actively leverage these traits. Limited efforts were made to attract, develop, and retain FGAs in company leadership roles. Most privileged work competence over linguistic skills.
Discussion
This study establishes that the findings are consistent with the existing literature, particularly Stephens et al. (2014) and Reardon and Galindo’s (2009) observation of the achievement gap between millennial FGAs and multigenerational Americans. In the opinion of the FGA study participants, the challenges they faced in their workplaces can sometimes be expressed as a lack of social inclusion. Suárez-Orozco et al. (2009) argued that the net effect is a lack of cultural competence and productive social integration.
In addition, many of the FGAs’ responses indicated that their organizations lacked clear policies on attracting and retaining them. As such, without a holistic approach, organizations may unintentionally create work environments with prejudices and unnecessary hurdles to overcome. Tseng (2010) encourages corporations to focus not only on salaries and employee benefits but also on corporate culture as a competitive way of retaining talent.
Key Findings
Lack of Inclusion
FGAs often experience workplace exclusion due to the absence of clear policies for attracting and retaining them. Abrego (2011) concludes that this unintentional bias creates barriers to their professional growth and inhibits them from feeling a part of Americans pursuing the American dream. Importantly, FGA participants concluded that the organizations they were employed with did not encourage cultural diversity. As Markos & Sridevi (2010) and Tseng (2010) noticed, many organizations that do not actively recruit FGAs or leverage their bilingual skills miss out on the benefits of cultural diversity.
Diversity in Innovation
Organizations that fail to embrace cultural diversity risk losing young, creative talent, particularly millennials, who value diverse and inclusive environments. (Suárez-Orozco et al., 2009). Since organizations need creativity and innovation as the key drivers of competitiveness in the current business space, organizations must consider implementing inclusive and culturally diverse teams to attract that type of talent. (Linnenluecke & Griffiths, 2010; Tseng, 2010)
Whereas the issues raised can be addressed by strategies such as fostering cultural diversity in the workplace, more inputs should be put in place to change managers’ perceptions of FGAs as essential and impactful in achieving corporate goals (Ilmakunnas & Ilmakunnas, 2011). According to the managers’ perspectives, there are no current strategies to attract or enhance talent retention. Rafaeli et al. (2012) point out that lacking formal retention strategies could lead to high turnover rates, inconsistent productivity, and a lack of long-term engagement from FGAs.
Implications for Practice
Labor statistics and other data indicate that workforces are increasingly diverse (Mor Barak & Travis, 2013). Diversity encompasses any differences in composition among individuals within a work unit. (Roberson et al., 2017). As Milkman et al. (2015) suggested, managers have a role in changing their workplace practices from those depicting racial bias to those showing inclusivity (Ilmakunnas & Ilmakunnas, 2011). Strengthening labor laws against racial discrimination and promoting merit-based promotions can enhance FGA motivation and productivity. Inequalities in employment opportunities and a lack of merit-based recruitment highlight some of the social evils that further divide these Americans (Ehrhart et al., 2012; Hegewisch et al., 2011).
Globalization and increasing ethnic and gender diversity are turning managers’ attention to the management of cultural differences (Cox & Blake, 1991). Organizations should shift from biased workplace practices to inclusive policies, such as diverse decision-making, to attract young, tech-savvy professionals. Such strategies (e.g., inclusivity in decision-making) can also positively change organizational image, thus attracting young professionals like technology-savvy millennials who may also be FGAs who will play a critical role in innovation and redesigning business practices through creativity (Boykin et al., 2011).
A significant amount of research has been conducted on diversity “best practices” to understand whether they help reduce discrimination, increase managerial diversity, and enhance performance (Nishii et al., 2018). Organizations need to expand their notion of diversity to include not only the organization itself, but also the larger systems that constitute its environment. (Mor Barak & Travis, 2013). Eliminating bias in employment and recruitment creates a fairer society and improves social integration. Since the FGAs are continuously looking for opportunities to be impactful, American organizations tap their willingness and dedication to drive their firms to new performance levels (Anitha, 2014).
Providing equal educational and employment opportunities for FGAs can help future generations unleash their potential and contribute meaningfully to society (Anitha, 2014). Schools and religious institutions are key to promoting comprehensive, well-adjusted individuals at an early stage. Their educational inclusiveness goal is building a society based on equal opportunities, positively affecting present and future workforce behavior, as Chandrasekar (2011) posited earlier in the literature review.
Limitations
This study was based on primary data collected through phone interviews due to COVID-19 restrictions. The respondents, especially managers, might have limited the truthfulness of their responses, thus affecting the credibility and reliability of the findings. Conducting in-person interviews in the future might deepen the insights obtained. Additionally, time constraints may have limited the depth of the data collected.
Conclusion
As the literature concurs and the survey demonstrates, organizations should actively attract FGAs to drive innovation and performance, leveraging their bilingual skills in global and domestic operations. By encouraging ethnic and cultural diversity integration, companies have the ability to promote an inclusive workplace that unites employees, prevents cultural conflicts, and adds value to the company’s productivity.
The most concerning responses in the survey all pointed to recognizing that open communication, job opportunities, and equal recruitment criteria enhance an organization’s reputation and attract top talent, and ultimately help companies prosper and achieve their goals.
While limited in its format and the particular situation created by the pandemic in terms of direct communication, the findings of this study may help American employers attract FGAs to their organizations. Policymakers could use the insights to improve FGAs’ transition from the classroom into the workforce. The U.S. government may also use the findings to develop policies to reduce the achievement gap and improve FGAs’ competitiveness in the labor market. Furthermore, scholars may leverage this research to explore additional ways employers can enhance FGAs’ productivity in the workplace.
Similarly, the field of First-Generation American studies, which often intersects with higher education, sociology, and ethnic studies, seems to concur with the results of this short survey. For example, Laura Rendon’s (1994) seminal theory of validation, as well as sociologist Vincent Tinto’s (2024) framework to understand the factors of college persistence, already outline many of this research’s findings. They can only encourage further study in this key element of corporate competitiveness and future success.